The economists have finally announced that Nigeria is officially in a recession! In reality, this is not news to most of us as we have been living with increased prices and reduced cash flows for a while already.

Based on all the macro-economic indications and projections, the state of the economy is not likely to change dramatically anytime soon. So what does this mean for you and your family? How do you survive this period?

Just to help set you on the right path, here are 5 key tips for surviving the recession:

You Need Good Financial Habits

Now more than ever you need to develop and practice good financial habits. The age old principle of having a monthly budget will serve you well. Do you know where your money is going and what it is doing for you? Make a detailed list of the essential expenses (rent, school fees, petrol/transportation, etc.) and non-essentials (entertainment, extra-curricular activities, spontaneous purchases, etc.). Putting this simple discipline to practice will show you areas where you can manage your budget better. [READ: Teach Your Child About Money]

2. Make Saving a Priority

Difficult as it may sound, you should set aside as much of your income as possible. Do you immediately spend all you earn or have you created a separate saving account you have limited access to? There will always be bills to pay so it’s key that you always pay yourself first – the rule of thumb is to set aside at least 10% of your monthly income, but you can start by putting a fixed amount aside weekly. Yes, it is possible to achieve if you set your mind to it. [READ: Have a Money Mindset]

3. Cut Down on Excesses

Things are more expensive now and it’s very unlikely your income has increased so you really need to stretch your pay. Take a hard look at the non-essentials and decide which ones you are going to reduce/eliminate completely. If you have kids, bear in mind that they don’t understand financial matters so you will need to help them through the adjustment period. Also look at your household structure especially with respect to utilities and domestic staff: are there areas you can cut down on? For example some friends share the services of a cleaner and also share the cost. With the high cost of petrol, people are also car-pooling with neighbours and sharing petrol costs. Can you come to a similar arrangement with friend/colleagues? [READ: Adapting to The New Normal in 2016]

4. Boost your Income

You definitely need to create multiple streams of income. If you’re employed, think about what you can start on the side. If you run a business, how can you expand your product or service line to include additional areas you can generate revenue from? What problem do you see around you that you can create a solution for and charge people to use? Also look at how to get the best returns from the money you are setting aside – is your money just sitting in a current account or in a higher interest bearing account? Are you saving in mutual funds or Treasury Bills? Talk to a fund manager and explore all possible options.

5. Learn How to Say NO

You can’t afford to say yes to every request/desire, whether it’s buying yet another aso-ebi fabric or pair of shoes, sponsoring friends to a day/evening out or being unduly generous with financial gifts. When the chips are down, you are solely responsible for taking care of your finances and since the noose has clearly tightened on the economy, you must adjust your lifestyle accordingly if you want to survive. [READ: Love & Money Management]

Rolayo Akhigbe is a Holistic Finance Specialist passionate about helping people invest wisely in their emotional, physical and financial health. Connect with her on the following: